European stocks close higher with economic optimism

Europeans despite inflation concerns market Investors took stock as optimism continued about a strong economic recovery, closing the deal on Friday’s strong note.

Expectations that the world’s central banks will not tighten monetary policy or curtail stimulus measures support sentiment.

Investors were also looking forward to the Federal Reserve Board’s monetary policy announcement scheduled for next Wednesday (June 16).

The Pan-European STOXX 600 rose 0.65%. Germany’s DAX rose 0.78%, France’s CAC 40 rose 0.83%, the UK’s FTSE 100 rose 0.65%, and Switzerland’s SMI rose 0.26%.

Among other markets in Europe, Austria, Belgium, Finland, Ireland, the Netherlands, Portugal, Russia, Spain, Sweden and Turkey performed well.

Denmark, Greece, Iceland and Norway rose slightly, but the Czech Republic and Poland closed weakly.

In the UK market, Thungela Sources Limited’s share price surged 25.4%.

Sanne Group’s share price rose 12%. Specialist fund managers have confirmed that they have received a fifth unsolicited, non-binding offer from Cinven regarding the possibility of a full cash offer at a price of 875p per share.

Melrose Industries, ICP, Glencore, Smurfit Kappa Group, Evraz, Intertek Group, 3I Group, Bunzl, Standard Life, Entain, Antofagasta, Smith (DS) and Halma increased by 2-3%.

Informa, Just Eat Takeaway, BT Group, Imperial Brands, Ashtead Group, Sainsbury’s (J) and Standard Chartered ended with sharp to moderate losses.

In France, Renault has recovered more than 7%. Valeo, Capgemini, Worldline, Faurecia, ArcelorMittal, Teleperformance, Dassault Systèmes, Airbus Group and LVMH also rose significantly.

In the German market, BMW, Daimler, Volkswagen, ThyssenKrupp, MTU Aero Engines, Deutsche Post, Continental, RWE and Adidas increased by 1-2%. Deutsche Bank has fallen sharply.

In the economic release, the UK Economy According to statistics from the Bureau of Statistics, government regulations affecting economic activity continued to be relaxed in April, resulting in the fastest growth since July 2020.

Gross domestic product increased 2.3% month-on-month in April, faster than the 2.1% increase seen in March. The rate was predicted to improve to 2.2%.

In a biannual report, the German Federal Bank predicts that the German economy will grow faster than previously estimated, with the expectation that vaccination campaigns will curb pandemics quickly and sustainably.

The central bank predicts that the largest eurozone economy will grow 3.7% in 2021, but previously it was 3%. The outlook for 2022 has been raised from 4.5% to 5.2%.

By 2023, real GDP growth is expected to lose momentum, but it will still grow by 1.7%, Bundesbank said.

Germany’s wholesale prices have risen at the fastest pace since mid-May 2008, according to data released by Destatis. Wholesale prices in May rose 7.2% in April and then 9.7% year-on-year. This was the fastest rise since July 2008, when prices rose 9.9%.

Annual growth is primarily due to a 46.8% increase in petroleum product prices.

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European stocks close higher with economic optimism

Source link European stocks close higher with economic optimism

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